An AIG news release said Public Entity Plan and Trustee Protector is available in more than 30 states, with limits of up to $50 million. The policy includes coverage for trustees, employees, elected or appointed officials, the benefit plan, and the retirement system for claims alleging breaches of employee benefit law or errors in plan administration, according to the release.
The company pointed out that while public plans are regulated at the state and local level and are not subject to the Employee Retirement Income Security Act (ERISA), plan fiduciaries may still be held personally liable to restore losses to a plan caused by their breaches of duty. “All too often, sovereign immunity is either not available or cannot be relied upon,” the announcement said.
“We created Public Entity Plan and Trustee Protector in response to rising concern about the personal liability of managers of public entity employee benefit plans. This policy specifically addresses the unique litigation issues faced by these individuals. “ said Michael Smith, President, AIG Executive Liability, in the news release.
More information is available at http://www.aig.com/aigexecutiveliability .